Indian state-owned aluminium producer National Aluminium Company (Nalco) and Indian Defence Ministry’s Mishra Dhatu Nigam (Midhani) announced last week a new joint venture that will manufacture aluminium alloy plate and sheet.
Nalco made the announcement last Thursday after the close of the market, saying that the two firms have signed an agreement to incorporate a joint venture company for the production of high-end aluminium alloy plate and sheet. Per the agreement, the two firms will have equal ownership of the joint venture’s initial shares.
In a filing to the BSE, Nalco said the joint venture’s board of directors would consist of at most a dozen members, with each company nominating at least two members to the board.
Upon commencement, the new joint venture will connect with a partner firm for technological aid and assistance. The technology partner will ultimately hold a 10-percent share in the joint venture, whether acquired at incorporation or via a subsequent dilution of shares.
Midhani is already in the specialized metals business, as it currently utilizes elements like cobalt, titanium, and nickel for their high strength-to-weight and anti-corrosion properties. The firm makes metals and alloys for use in nuclear, defense, aviation, and biomedical applications.
Nalco’s shares rose on Friday after the announcement, swelling by 1.37 percent at mid-day.